Redundancy rules

beccaatmpk

Hi, I was advised in January that I was being made redundant. My contract was due to end in April but I was furloughed in march. My company has been back up and running since the beginning of June but I'm still furloughed and told to sit tight, with no new end date even though there's no possible chance of being kept on. I'm only due my final consultation as are the rest if my team. I just want my contract ended and my redundancy payment. Is there anything they can do? Are they legally allowed to keep me on furlough with no end date when they know that redundancy is the final outcome? Many thanks.

Jeremy535897

Unless you have another job lined up, what motive do you have for bringing matters to an early conclusion?

beccaatmpk

The company are in financial difficulty. I suspect they are holding off redundancy to avoid payment of their part of redundancy, notice pay, holiday owed etc...  if they were to fall into administration, this amounts to over half of my calculated redundancy estimate so I'm panicking a little about it.

[Deleted User]

Look at it this way, so far if you are furloughed you will have been paid (possibly at 80%) for May, June and by the look of it July as well. The chances are that you are already better off net from being furloughed and at a minimum if they go into liquidation you will get statutory redundancy paid by the government if the company can not afford to pay that. If they have to pay you notice it is likely that would also be done under furlough so that they can recover part of the cost, it is very unlikely they would use PILON and they would almost certainly make you take holiday whilst on notice.

The only real difference would be between your contractual redundancy and statutory, if there is a difference, however and difference is more than likely to have been cancelled out by the benefits of several months of being paid during furlough.

Jeremy535897

beccaatmpk said:

The company are in financial difficulty. I suspect they are holding off redundancy to avoid payment of their part of redundancy, notice pay, holiday owed etc...  if they were to fall into administration, this amounts to over half of my calculated redundancy estimate so I'm panicking a little about it.

I doubt that's the motive, because if they become insolvent, they lose everything anyway, and it's only when they become insolvent that they won't pay contractual redundancy pay. I suspect they are on the edge, and are hoping that trading for a while will enable them to finance the redundancies they believe they need to make to keep the business going. If there are several of you waiting for substantial redundancy payments, I suspect they simply don't have the cash at present.